SAO PAULO–China’s demand for executive airplanes during the next decade will likely reach 805 jets, with more than half of those being more expensive large executive planes, Brazilian plane maker Embraer (EMBR3.BR) said Tuesday.
Embraer, which recently switched over production at its China factory to produce executive planes rather than commercial planes, expects continued strong growth in the Chinese market, the company said during the Chinese International Business Aviation Show, according to an emailed statement. In the past five years, the executive-jet fleet in China has grown at an average pace of 27% a year, thanks to the rapid rise of wealthy individuals in the Asian country.
As demand for flights connecting the country’s business centers grows, demand for executive planes is also expected to expand, Embraer said.
Large executive planes should account for 51% of future Chinese orders for planes and, because they are more expensive, account for 78% of the market value of orders, Embraer said.
Embraer has already received orders for 38 planes since it began selling in the Chinese market in 2004. Its venture with the Aviation Industry Corporation of China, or AVIC, will build Legacy 600 and Legacy 650 planes for the executive market. The first Legacy 650 produced in China underwent test flights for the first time at the end of August, and delivery of that first plane is expected at the end of this year, Embraer said.